ISLAMIC FINANCE CONFERENCE 2015
Islamic Capital Market: Inroads into the U.S. - "An Alternative Engine for Growth"
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Following the successful Sukuk issuances by General Electric Capital. (2009: USD 500M) and the World Bank- International Financial Corporation (2004: USD 134M, 2009: USD 100M, 2014:USD 500M, and 2015:Not Disclosed Yet), it is apparent that fund raising using Islamic capital market instruments is not new in the U.S. capital market-place. In the U.S. sukuk has been used to finance infrastructure projects and productive real sectors. It is projected that Global sukuk will hit a record high of USD 175 billion in 2015. With a stronger US dollar and projected higher sukuk issuances, U.S. can attract investors across the globe especially GCC investors who are challenged with ample liquidity.
Malaysia’s success is demonstrated by its total Sukuk issuance which approximate USD 155.67 billion (being 58.1% of total global sukuk outstanding of USD 268 billion) in 2014. Considering U.S. is embarking on infrastructure spending against a back drop of ample liquidity in the GCC provides opportunity for the American infrastructure companies to issue sukuk to capture investors from GCC. Malaysia offers a multi-currency platform for international fund raising and for investment activities by multinational entities.
Even U.S. based asset management houses e.g. Principle Financial Group, Franklin Templeton, Columbia ThreadNeedle, and Saturna Capital Corporation have capitalized on the growth in Islamic capital market using Malaysia as a base. Worth noting, community banking adopting Islamic-style principles started 65 years ago in U.S. which now is name as Devon Bank in Chicago.
The additional requirements in Islamic finance which strongly discourage excessive risk taking and speculative business activities provide additional safeguards for stability and resilience in the global financial system which is in tandem with the reform to financial regulation environment in the U.S. under Dodd Frank Act and other Acts.
Investors in the U.S. institutional and high net worth including pension houses will be pleased to know there is an investment case (supported by empirical evidences) that Islamic investing has proven to grant resilient performance even during down-trending market and volatile times the last 7 years. There are about 19 licensed Islamic asset managers in Malaysia with a total asset under management of approximately USD 20 billion, about 10 of which are owned by global brands.
This conference will be a perfect meeting place for Malaysians and Americans to leverage on each other’s needs and strength. Interestingly there seemed to be also pent-up demand by the 7 million Muslim populations in U.S. who are keen to invest responsibly. These opportunities should attract greater collaboration and cooperation between American and Malaysian capital market players to create an enabling environment for cross boarder connectivity. It is our hope that the U.S. Islamic capital market will further widen at both the issuances and investor bases.
WHO SHOULD ATTEND?
The Islamic Finance Industry Council promotes the internationalization of Islamic finance by forging strategic and collaborative partnership between Malaysian and the U.S. where its market and society can benefit from the economic and financial linkages. In the interest of shaping the internationalization of Islamic finance collectively, IFIC will provide the cross border connectivity.
OCTOBER 21, 2015
LOCATION - DAY 1:
THE NATIONAL PRESS CLUB
13, 529 14th Street Northwest,
Washington, D.C. 20045
OCTOBER 22, 2015
LOCATION - DAY 2:
EMBASSY OF MALAYSIA
3516 International Ct. N.W.
Washington, D.C. 20008
Lunch Table Sponsors
Lead Media Partner